Alabama

EDITORIAL: Bentley forgets the workers

Gov. Robert Bentley summoned the press Thursday to listen to him congratulate

Gov. Robert Bentley 2.06.2012MONTGOMERY, Alabama - Gov. Robert Bentley speaks after a selection committee meeting for the Auburn University board of trustees at the State Capitol in Montgomery, Ala., on Monday, Feb. 6, 2012. (The Birmingham News / Michelle Campbell)

(Press-Register/Mike Brantley)Gov. Robert Bentley

himself and legislative leaders for taking several obvious steps to save the state hundreds of millions of dollars a year.

He might have helped his image and his cause had he bothered to mention the personal sacrifices of about 120,000 state employees and teachers who are helping him reach his ultimate goal of saving the state $1 billion a year.

More than a third of the $645 million in annual "savings" Bentley announced is coming right out of their pockets: $243 million in higher retirement contributions and health insurance premiums.

To be sure, the Legislature had little choice but to cut the state's share of the cost of these benefits and to raise employee contributions. The cost of the retirement program had reached an unsustainable $1 billion a year out of total General Fund and school budget revenues of about $8 billion. That amount would have increased by $745 million in eight years under previous contribution levels, according to the Retirement System of Alabama.

That simply could not continue, particularly after the recession cut state revenues by more than $1 billion a year. The need to reduce the state's cost of these benefits was widely recognized long before Bentley became governor.

Bentley did acknowledge that $164 million in savings will materialize only years from now. This will be through major changes in pension rules the Legislature passed for employees hired in 2013 and later. The Legislature also repealed a program -- DROP -- that awarded older state employees for not retiring early. That's good for $58.5 million in savings. Both steps were necessary because of the state's ailing budgets.

Bentley also cited $181 million in savings through "workforce right-sizing," a term that suggests the state is doing something to save personnel costs. Well it is, if not replacing slightly more than 3,000 employees who have retired or otherwise left their jobs is doing something.

Several state agencies have refinanced state bond issues at lower interest rates and that will save $8.3 million annually, another obvious step. Not so obvious is the $19.4 million a year the state expects to save by changing the way it pays lawyers to defend poor clients in criminal courts. The Bentley administration sought this change.

Bentley held the press conference about two months before voters go to the polls Sept. 18 to decide whether the state should spend about $146 million a year for three year from natural gas royalties to shore up the state General Fund. If that vote fails, he and the Legislature will have to look elsewhere for money to prevent deep cuts in spending for Medicaid, prisons, mental health and other services.

The Alabama Education Association is calling on teachers to support this plan. The AEA leadership says it fears that Bentley and lawmakers will take that money out of the state school budget. About 30,000 employees at General Fund agencies also have a motive to vote with Bentley.

But the governor is taking a risk he will alienate 120,000 employees by ignoring their contributions. Many of those workers vote, and their votes can make the difference in a referendum likely to see a low turnout.

By Mike Hollis, for the editorial board. Email: mike.hollis@htimes.com.